Near panic-like selling on NYSE, but some dip-buying behavior on Nasdaq

The two major stock market exchanges are exhibiting very differing types of trading activity as the major indexes tumble, as the Arms Index of the NYSE suggests near panic-like selling but a little more dip-buying behavior on the Nasdaq. The Arms is a volume-weighted breadth measure that tends to rise above 1.000 as the stock market falls, with the ratio of advancing/declining volume tends to fall more than the ratio of advancing/declining stocks as sellers tend to become more aggressive than buyers. A rise to 2.000 and above suggests panic-like selling. The Dow Jones Industrial Average shed 576 points, or 2.2%, the NYSE Composite lost 2.0% and the Nasdaq Composite shed 3.0% In morning trade Monday, the NYSE Arms rose to 1.871, with the number of declining stocks outnumbered advancers 6.7 to 1 while volume in declining stocks outpaced advancing volume 12.6 to 1. Meanwhile, the Nasdaq Arms slipped to 0.837, with declining leading advancers 7.7 to 1 but declining volume topping advancing volume by just 6.4 to 1, suggesting there are pockets of aggressive buying.

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